February 16, 2023

Dear Members and Sponsors of the Alliance of Nonprofit Mailers:

As we get closer to the expected and promised July postage rate increases, likely details are becoming more clear. One important variable yet to be decided is whether USPS will get its wish to add 0.936% for the density formula by ignoring the $57 billion savings it received from the Postal Service Reform Act of 2022. The Alliance is opposing this at the Postal Regulatory Commission.

• Likely date of rates implementation: July 9, 2023

• Likely filing at PRC by USPS: after March 14 and no later than April 11, 2023.

• Current CPI authority: 2.907%

• Likely 6-month CPI authority after March 14 CPI release: approximately 3.4%

• Retirement factor add-on: 1.036%

• Density factor add-on, only if USPS gets PRC to reverse itself over our objections: 0.936%

• Likely cap on compensable mail without density add-on: approximately 4.4%

• Likely cap on compensable mail with density add-on: 5.3-5.4%

• Likely increase for non-compensable Marketing Mail flats and Carrier Route flats with the required extra 2%: at least 6.4% without density, at least 7.3-7.4% with density; potentially higher.

• Likely increase for non-compensable Periodicals with the allowed extra 2% plus 0.744% banked: approximately 7.2% without density and 8.1% with density.

We will update you if anything develops.